The Bottom Line on Contract Negotiations
Most people who are in the real estate process assume that it is the for sale price of the property that affects the overall bottom line profit, or loss, of the seller and buyer, respectively. Whilst the price that you advertise your property at does affect the bottom line, it is not the only thing that has an impact and it is worth thinking about these items closely.
5 Considerations
There are at least five other considerations that can influence the overall bottom line that you gain from the sale of your property. One thing that many people ignore, which can have a large impact on the overall bottom line, are the transaction costs that are incurred by the seller and buyers, and who pays for these costs.
Transaction costs can include various items, ranging from items such as the brokers commission, a home inspection, a termite inspection, escrow or attorneys fees, a title search, and transfer taxes. The price tags on these items vary greatly around the country and you should ask your realtor to give you an estimate of how much these fees will cost, so that you can work out how much you will need to pay and who is responsible for what.
How much money the buyer is putting into escrow and how soon is also a consideration that can affect the bottom line for the seller. A big deposit and/or a substantial down payment are normally viewed as a sign that the buyer is serious about carrying out the deal.
A mortgage-financing contingency can also affect bottom line. A mortgage escape clause is a key thing for a buyer, to protect them from being unable to afford the purchase. Not having one can affect the bottom line for the buyer.
An item of some debate during the sale of a home is the items in the property. What furniture, fixtures and appliances, if any, are being sold with the property is always a touchy subject and can affect the bottom line for the seller and buyer, in different ways. Generally anything thats permanently attached to or installed in the home is classed as part of the property. Everything else is the sellers personal property.
The ramifications of breaking a contract, whether it's the seller or the buyer is a major factor that can affect the final profit from the sale of your property. Unless an unmet contingency triggers the abandonment of the contract, its a binding legal document; therefore buyers who fail to honor the deal can lose their deposit money. Alternatively sellers who try to back out can be sued for, forcing the sale of the home to the buyer.
